The Basic tab defines the benefit item, identifies who may receive it, and supplies the formulas and adjustments used to determine the benefit.

Basic Information

• Name: Identifies the benefit item within the Valuation Provision and in valuation detail.
• Decrement Type: Selects the event that produces the benefit: Retirement, Termination, Death, or Disability. The corresponding decrement probability is used to weight the benefit.
• Definition Type: Determines how the benefit is defined.
  • Formula: Calculates the benefit using the Benefit Formula entered below.
  • Benefit Payment Set: Uses a configured Benefit Payment Set. This option is currently unavailable.
• Configure: Opens the Forms of Benefit Payment list.
• Benefit Recipient: Selects All Participants, Married Participants, or Single Participants. The selection determines how the sponsor marriage assumption and form-of-payment elections apply to the benefit.
• Payable To: Identifies whether the benefit is payable to the Participant or Spouse.
• Applicable To: Displays the participant status to which the benefit item applies. The value is determined by the selected decrement and benefit configuration.
• Benefit payments begin in year following death: When available for a death benefit, begins projected benefit payments in the year after death rather than the year of death.
• Override Assumed COLA Parameters: Replaces the sponsor-level COLA assumptions for this benefit item with the parameters supplied by the selected Annuity Factor Definition.
• Annuity Factor: Selects the Annuity Factor Definition that supplies the item-level COLA type, rate, and timing when the override is selected. COLA Start Age is the age after which COLA increases begin.

Benefit and Eligibility Formulas

• Benefit Formula: Defines the annual benefit payable at Normal Retirement Date.
• Filter Formula: Returns a nonzero value for each projected row to which the benefit item applies. A result of 0 excludes the item from that row. If left blank, no item-level filter is applied.
• Benefit Start Date: The first eligible date; a row on this date is included.
• Benefit End Date: The first ineligible date; a row on this date is excluded.
• Vesting Adjustment: Supplies the vested fraction used for active PVFB, EAN, and the separate Vested Liability result. Ordinary UC and PUC remain unvested. If left blank, the adjustment is treated as 1.
• Early/Late Benefit Adjustment: Supplies the factor used to adjust the benefit payable at Normal Retirement Date for an earlier or later benefit commencement date. If left blank, the adjustment is treated as 1.
• Return of Employee Contributions Balance (if non-vested): Replaces the benefit item with the employee contribution balance when the Vesting Adjustment is exactly 0. The balance is treated as fully vested and valued as a lump sum without the Early/Late Benefit Adjustment, Conversion Factor, or Annuity Factor. This formula is separate from the Valuation Provision’s Employee Contributions formula.

The Attribution tab controls how this benefit item is attributed under Projected Unit Credit (PUC) and Unit Credit (UC) and defines its funding period under Entry Age Normal (EAN).

Projected Unit Credit (PUC)

• Attribution Method: Determines how the benefit projected to each decrement date is attributed through the valuation date and next valuation anniversary.
  • Accrual Proration - Formula: Uses the Base Formula result at the valuation date in relation to its result at the projected decrement date. The ratio cannot exceed 1.
  • Accrual Proration - Components: Attributes each Formula Derived Item in the Benefit Formula using that item’s valuation rate and optional Benefit Base.
  • Linear using Service Definition: Attributes the projected benefit using service through the valuation date in relation to service at the projected decrement date. The ratio cannot exceed 1.
• Service Definition: Selects the component attribution service when Linear using Service Definition is selected. A blank or unavailable selection prevents the valuation from running.
• Do not allow benefit to drop below unit credit benefit: Uses the greater of the PUC and UC attributed benefits separately at the valuation date and next valuation anniversary.
• Set benefit equal to unit credit benefit: Replaces the PUC attributed benefit with the UC attributed benefit at both dates. If both comparison checkboxes are selected, this option takes precedence.

Unit Credit (UC)

• Attribution Method: Determines the UC benefit through the valuation date and next valuation anniversary.
  • Accrual Proration - Formula: Evaluates the Benefit Formula at the valuation date and next valuation anniversary.
  • Accrual Proration - Components: Attributes each Formula Derived Item using its valuation rate, optional Benefit Base, and configured Unit Credit date treatment.
  • Linear using Service Definition: Attributes the benefit using the selected service through the valuation date and next valuation anniversary.
• Service Definition: Selects the component attribution service when Linear using Service Definition is selected. A blank or unavailable selection prevents the valuation from running.

Base Formula

• Base Formula: Supplies the cumulative accrual measure when the PUC Attribution Method is Accrual Proration - Formula. If the valuation-date result is zero, the projected benefit is fully attributed. Under Accrual Proration - Components, each Formula Derived Item uses its own optional Benefit Base instead.

Entry Age Normal (EAN)

• Attribution Stop Date: Determines the end of the component funding period.
  • Final decrement date: Uses the final projected decrement year in which this benefit item produces a benefit.
  • Final retirement date: Uses the first future retirement date at which retirement becomes certain.
• Benefit Eligibility: Selects the Service Definition used to derive the component funding start. If none is selected, the funding start is based on date of hire. This selection does not replace the Filter Formula, Benefit Start Date, or Benefit End Date on the Basic tab.